The case study was a key catalyst for the development of LKS Quaero’s leadership and culture programs. Be sure to read our new public program details. Here Peter highlights what happens if you implement a business transformation process (e.g. LEAN) while making sure you have the right people in the right roles doing the right work – and what happens when you don’t…

Business Background

It was a large scale, heavy industry manufacturing plant, one of five similar manufacturing plants globally in the fleet owned by the same company. It was old, hot, dirty, and loud.

The plant had the highest operating cost in the fleet, it had very poor safety performance, and poor behaviour was tolerated. There was significant resistance to change, high absenteeism, and leaders promoted from shop floor because of their experience. Additionally, there was poor equipment reliability, little discretionary effort, low levels of engagement, and poor housekeeping with little pride in the workplace. The environment was rife with a them and us mentality.

On the plus side, the plant produced very good quality product!

Purpose

The task was to implement business improvement (based on LEAN transformation methodology) to deliver a step change improvement in safety, cost, and productivity.

Thinking about how your business planning has gone for this financial year?

Does this sound familiar then?

Here we go again!

Looks like I’m going to have to turn myself inside out again to produce a business plan for next year!

Why does it have to be so complex? No one really reads it after it’s been approved anyway.

I’d better get the one I did last year out of my bottom drawer to see if we achieved any of the “stuff” that we said we were going to do last year.

Oh dear, looks we didn’t do all the “stuff” we said we were going to do, but we did do a lot of other great “stuff’’!

Oh! It looks like we didn’t deliver on our promises. Hope we can do better next year.

Best get started on the plan. Hmm, now where is that business planning template?

Do you get frustrated by the business planning process? Do you feel it is a waste of time? Do you feel like you are doing lots of “stuff, ” but not turning your intention into reality? Do you find it hard to keep track of all the things that you committed to in the plan?

Well, if you’re thinking of using the same old process and expecting better results this time around, you are taking an unnecessary risk.

When I talk to clients, I say business planning doesn’t have to be complicated in the extreme. Part of the challenge is setting off from a sensible platform. For this, we have the Plan-Do-Check-Adjust process, which in my view is “Agile” thinking at its best. Here’s how I approach the planning process.

Peter White is an experienced organisational leader with demonstrated leadership ability and a proven track record in developing employees and creating a constructive culture where working productively and continuous improvement form a way of life. Peter has an electrical engineering background, specialising in large and medium heavy industry environments. He is an Associate for LKS Quaero specialising in training, leadership, and culture. Here is his advice for leaders of amalgamating Councils in NSW.

What are the key leadership and culture challenges in the amalgamations in NSW?

The culture itself will be a big challenge. Many Councils are likely to be experiencing a passive defensive culture, meaning many will be dependent on the leadership to tell them what to do or they will be keeping their heads down, not wanting to be noticed and hoping it will all go away so things can get back to how they used to be.

A silo mentality is also common, where people are only interested in their own “patch”. A common issue here is the belief that knowledge is power, leading people to think ‘I will keep the information to myself so I will be protected’. In order to implement sustainable change, these silos will need to be identified and broken down. This can be achieved through a positive experience, provided the team members have clarity around their futures and are kept well informed of what is happening around them.

New Councils will also have to assess the skill, will, and drill of leaders at all levels. If an organisation needs to transition from the current state to a new desired future state, then it is important to determine if the organisation has the right person in the right role doing the right work. Another way to look at this is to determine if the person has the skill to do the work – have they been adequately trained? Do they have the will – do they want to do the work of the role, are they engaged in the organisation, and are they prepared to deal with difficult issues, including performance management? And finally, do they have the drill (or discipline)? They might have the skill and the will, but do they actually do it religiously every time? Are they walking the walk and talking the talk? Do they clearly demonstrate their commitment through their actions and comments?

Beyond the capability of leaders to deliver change, a major challenge is the uncertainty of what the future holds for individuals throughout the organisation. A lack of role clarity will compound this. For those in temporary roles in particular, there will be some reluctance to make key decisions for the future.